Brown in EU spending row

Gordon Brown today clashed with Brussels by firmly opposing moves to increase the European Union's budget by £41billion over 10 years.

The Chancellor prepared for a meeting of finance ministers tomorrow by demanding a list of reforms to transform the way the European Commission spends its money.

He also called on the commission to appoint a powerful new vice-president responsible for economic reform.

Commission president Romano Prodi wants the extra billions to help the economies of the 10 countries who will join the EU in May.

He wants a "cap" on increasing the budget of 1.24 per cent of gross national income throughout the union.

But Mr Brown, the Cabinet's leading Eurosceptic, wants this held down to one per cent a year.

A Treasury statement today said: "The EU's budget needs to be set within a framework of financial stability."